It’s time for a change
It’s been just over 6 years since I stepped into my role working with the not-for-profit (NFP) sector – and what a journey it’s been. Now, it’s time for a new chapter.
Together, we’ve supported communities through the national bushfires, navigated a global pandemic, and strengthened transparency and integrity across the sector – all with the shared goal of building a thriving and sustainable NFP landscape.
This will be my final Straight from the source article, as I’ll soon be moving into a new role within Small Business in the ATO. But before I go, let’s take one last look at what’s happening…
Helping NFPs get it right
Our mantra – helping NFPs get it right – has guided our vision and purpose. I’m proud of the progress we’ve made, especially the shifts in taxable status driven by the introduction of the NFP self-review return.
Thousands of charities have registered with the Australian Charities and Not-for-profits Commission (ACNC) and been endorsed by us as income tax exempt. Many others have taken the opportunity to conduct organisational hygiene checks, updating their ABN details and taxable status.
I remember writing in one of my very first Straight from the source articles that best practice governance makes sense for any organisation – and that message still holds true. Best practice governance for all NFPs is to undertake an annual review, and our NFP tax super and registry responsibilities checklist makes it easier for smaller NFPs to do this.
Also remember that if you find you’ve made a mistake there’s no need to panic. You can refer to our NFP website guidance or contact us on 1300 130 248 if you need tailored support. Our NFP advice service operates Monday to Friday 8:00 am to 6:00 pm AEST or you can send us an email at atoendorsements@ato.gov.au.
Our NFP newsletter is also great way to get the latest tax and super news, tips and advice, straight to your inbox. If you aren't signed up for our monthly email yet, you can subscribe hereExternal Link.
Tax Time 2025
NFPs are not automatically exempt from income tax, and not every NFP qualifies.
There are 2 ways that an NFP can be eligible for income tax exemption:
- They are registered as a charity with the ACNC and endorsed by us as income tax exempt.
- They fall under one of the 8 categories that can self-assess eligibility for income tax exemption.
If your NFP isn’t a registered charity or doesn’t meet one of the 8 categories, your organisation might be taxable – and may need to lodge an income tax return or submit a non-lodgment advice each income year. If you think your NFP might be taxable, you can find out more at www.ato.gov.au/taxableNFPs. Or, if you think your NFP might be eligible for income tax exemption, more information and guidance is available at www.ato.gov.au/NFPincometax.
Whatever category your NFP falls into, it’s important to be confident you know the correct status of your NFP and that you’re staying on top of your reporting obligations, whether that’s:
- taxable NFPs lodging a tax return or a non-lodgment advice by 15 May each year
- charitable NPFs reporting to the ACNC
- self-assessing NFPs lodging an NFP self-review return by 31 October each year.
ATO strategic roadmap
You’ll recall from my column in July that we’re working with the sector to develop a strategic roadmap for tax, super and registry administration through to 2030 and beyond. Our interviews with more than 50 stakeholders have revealed a sector deeply committed to public good, but often overwhelmed by regulatory complexity, digital capability gaps, and with challenges accessing clear, tailored guidance.
We brought these insights to the July meeting of the NFP Stewardship Group which was convened as a 2-day workshop. Members explored emerging risks, digital innovation and the future of philanthropy. Breakout sessions focused on simplifying compliance, harmonising regulation and improving the NFP administrative experience. Several priority actions have emerged, including streamlining guidance, improving digital onboarding and clarifying registration pathways. We’re now exploring realistic solutions, testing ideas with delivery partners and continuing to co-design solutions with stakeholders.
The NFP roadmap is being delivered in 3 phases:
- Phase 1 – Understanding the state of the sector
- Phase 2 – Identifying the ATO’s role, risks and opportunities
- Phase 3 – Collaboratively co-designing the NFP roadmap
By capturing the voices and experiences of those within the sector, we’ve built a nuanced understanding of what matters most to NFPs and how the ATO can better support them. This work informs our strategic direction and ensures that the roadmap is shaped by evidence, empathy and continued sector engagement.
We’ll keep you updated and consult with the sector as we work towards publishing the roadmap in early 2026.
Key DGR updates
New guidance on the Community Charity deductible gift recipient (DGR) category is now live on ato.gov.au. Developed in collaboration with the sector, this content outlines the eligibility criteria, governance requirements, and endorsement process for community charity trusts and community charity corporations.
The guidance is designed to support NFPs with clear, practical information as they navigate the application process for the new DGR category.
NFP stewardship
The stewardship of the sector is a shared responsibility – we all benefit from the tremendous work conducted by NFPs, volunteers and other intermediaries who contribute to the sector’s strength and resilience.
Our NFP Stewardship Group is a key mechanism for collaboration, bringing together representatives from across the sector to share insights, raise emerging issues and help shape our approach to supporting NFPs.
I’ve had the privilege of working with many sector representatives and members over the past 6 years, and I've seen firsthand the passion, dedication and expertise they bring to the table. Their contributions continue to inspire and inform our work, and I’m grateful for the relationships we’ve built together.
I also want to acknowledge my incredible team, whose exceptional support has made all the difference. Their professionalism, commitment and collaborative spirit have not only helped drive our work forward but have also made it a genuine pleasure to lead. Some of the most rewarding moments over the past6 years have come from working alongside such dedicated and talented individuals – their insights, energy and care for the sector continue to inspire me every day.
Working with the NFP sector has been incredibly rewarding. I’ve been humbled by the passion, resilience and dedication of extraordinary people who support all facets of our community – often the most vulnerable.
From 29 September, Assistant Commissioner Tom Wheeler will take on the leadership of our NFP work. Tom brings deep experience, a thoughtful approach and a genuine commitment to the NFP community. Join me in welcoming Tom as he steps into this important role – I’m confident the sector is in excellent hands.
Thank you, take care and stay safe,
Jennifer